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  • 17Sep

    Good News for Online Poker

    Poker and the Law

    I interrupt my WSOP recap to make sure everyone knows about the legislative victory for online poker that happened yesterday. After failing in its first attempt a few months back, Barney Frank’s Payments System Protection Act–a bill that severely weakens the Unlawful Internet Gambling Enforcement Act (UIGEA) passed two years ago–passed a committee vote by a count of 30-19.

    Now I’m no lawyer, but the bill is written in English and my interpretation seems to be the same as the one that’s been floating around the internet. The bill basically revokes the UIGEA for everything other than sports betting (which is specifically illegal outside of Vegas), at least until the legality of other forms of gambling is made clear. In other words, until someone declares poker illegal, this bill would make it so that U.S. banks allow transfers to online poker sites.

    There is a long way to go. The bill has to get debated and passed in the House and Senate, and then signed into law by the President, before any of this takes effect. The process could last years. Or, like Bill “Douchebag” Frist did with the UIGEA, a legislator could tack this bill onto another bill and get it passed and signed into law much, much sooner.

    Even if the bill becomes law, there’s no way of knowing whether Party, Paradise, et al will reopen their doors to U.S. customers. And even if the bill becomes law, poker would not suddenly be seen as 100 percent legal in the eyes of the U.S. government. But getting this bill out of committee is a great start, and marks a sharp contrast from where we were two years ago, when the complete shutdown of online poker seemed a distinct possibility.

    Are you excited about the development? Or do you perhaps have a different interpretation or additional information? Feel free to comment. I’ll return everyone to their regularly scheduled WSOP recap soon.

    Posted by Matt @ 9:55 pm

Viewing 5 Comments

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    WOOT! about time when the UIGEA first came out in 2006 and I was shut down from partypoker boy was I pissed off. I was serving in Iraq at the time and it helped to pass my time (little bit i had) when that act occurred My first reaction was LAND OF THE FREE MY ASS!! I have been pushing my congressmen and governor about this, keep up the good fight matt so they cant take my retirement LOL
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    If said this before this could terrible for Fantasy Sports Betting. If they decide that fantasy sports should be roped into the UIGEA

    I am hoping that dollars in a recession wins out on this one and they decide to re write the whole thing

    here is an article we did on taxing online gambling http://backroomgaming.com/mod_articles/articles.php?action=show_article&article_id=47
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    With the state of the economy, I hope the House and the Senate realize that the U.S. financial institutions have bigger problems on their hands than the enforcement of the ridiculous UIGEA law. If fantasy sports league betting online continues to be legal, how would they differentiate between fantasy sports payouts and sports betting? Couldnt major online poker sites just add a fantasy sports section to their websites because of the "carve out" provision for fantasy sports? How would the banks know if the money was coming from fantasy sports or poker? I am glad Barney Frank and the PPA arer making headway against Spencer Bachus and the House Republican morons.... oh yeah....go Brewers....just kidding Matt....
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    "If fantasy sports league betting online continues to be legal, how would they differentiate between fantasy sports payouts and sports betting?"

    There's a pretty clear difference between the two, and there's some language in the UIGEA that at least partially accomplishes that.

    "Couldnt major online poker sites just add a fantasy sports section to their websites because of the "carve out" provision for fantasy sports? "

    They could, but they as a corporation would still be just as subject to DoJ persecution. Banks would simply have to deny them.
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    Thanks for the heads up, Matt. Any progress in the right direction is exciting. While we are heading towards a bit of an unknown legal area and forcing the legislative body to create some law regarding poker (case law being absent or vague), I believe that poker is a fundamentally American cultural activity and will be carved out.

    It's not some obscure hobby that is difficult to understand, it's poker - I simply have to imagine that many senators and representatives (and presidents) have engaged in playing a few hands with pals from time to time.

    Hope life is well with you - got your article via RSS @ livejournal.

    Chris Danek

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